broadband

Action toward improving the availability and speed of broadband in rural areas is emerging as an early theme in 2019, continuing activity from 2018. Oregon, Washington and the USDA all announced new initiatives last month. In mid-December, the USDA announced the availability of $600 million in grants and loans to support improvement of broadband accessibility across rural America. Funding is split into three equal pools.

Investments in rural broadband deployment can create significant returns on investments for state economies. A recent study from Purdue University's Center for Regional Development contends that Indiana could generate a $12 billion economic impact over 20 years with strategic broadband investments in rural areas across the state. Purdue researchers estimate that for every dollar invested in broadband by the state, there would a ROI of nearly $4 to the economy.

In February, SSTI highlighted several state-led efforts to address the rural broadband gap, which affects more than 30 percent of rural America who currently lack access to adequate broadband service.

Wyoming Gov. Matt Mead has approved legislation that will help promote economic diversification through innovation in a state that has relied heavily on a relatively small number of resource-based industries. Mead recently signed multiple pieces of legislation that comprise ENDOW (Economically Needed Diversity Options for Wyoming), a 20-year initiative focused on diversifying and growing the state’s economy. Notable bills include Senate File 118, which will establish a dedicated organization to support Wyoming’s entrepreneurs and provide funds to innovative startups, and Senate File 119, which will establish a dedicated fund for workforce training in economic sectors considered a priority for the state.

Between 2010 and 2015, job and establishment growth was substantially lower in U.S. counties where broadband is less available and technologies are less likely to be adopted, according to new research from the Purdue Center for Regional Development. To measure county-level digital divide, authors from the center developed the Digital Divide Index (DDI), which factors in demographics, jobs, and other establishment trends in the U.S.

A new map of broadband access based on Federal Communications Commission (FCC) data offers a granular look at the internet options available to Americans. Based on data submitted by internet service providers through FCC’s Form 477, the map provides insight on the types and speeds of internet access available on a block-by-block basis across the country. Notably, the maps do not include information on the cost of internet service. 

With more than 30 percent of rural America still lacking access to what the FCC considers adequate broadband, governors from across the country are working toward diverse strategies to build rural broadband capacity. By providing rural communities with access to full-speed, stable broadband, these governors hope that they can revitalize rural communities by helping small business formation and expansion as well as improve educational achievement/workforce training for rural citizens.

Can banks meet Community Reinvestment Act (CRA) obligations by helping address high-speed broadband gaps and the digital divide? Participants in a recent Federal Reserve webinar said yes and provided tips on how.

CRA is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods and the webinar explained how financing broadband initiatives would qualify as an economic development tool that meets the CRA service tests. Our communities would benefit on a number of fronts.

Broadband connectivity is foundational for regional competitiveness in the global economy, prompting more states and communities to develop innovative solutions to expand high-quality broadband access for their businesses, residents, education systems and public sector. Tennessee Gov. Bill Haslam provided one of the most recent examples of the trend by signing legislation making it easier for municipalities and cooperative boards to deliver broadband connectivity in underrepresented communities throughout the Volunteer State. Considerable socioeconomic and political challenges remain for communities interested in providing broadband service at the municipal level.

The National Telecommunications and Information Administration and the National Science Foundation have released The National Broadband Research Agenda, a report detailing key priorities for broadband research and data. Despite significant advances in broadband connectivity, disparities remain in access, adoption and choice.